Benefits of Invoice Finance
It’s fair to say invoice finance hasn’t always had the best reputation. This was mainly due to its one-size-fits-all approach and lack of flexibility to individual businesses’ needs. In the past decade, however, far more products have been added under the invoice finance umbrella, designed to offer business owners the flexibility they need. These products include invoice factoring, confidential and non-confidential invoice finance, recourse and non-recourse, and selective invoice finance. We’ll break these down in more detail below.
There are three common reasons for businesses to use invoice finance:
- Maintain working capital to continue high growth.
- Offer extended payment terms to clients.
- Facilitate working capital needs of contracts.
We don’t leave anything to computers and algorithms; every application is looked at by an experienced, human professional.
Different Types of Invoice Finance
Invoice factoring
The perfect solution for businesses looking for a full hands-off solution. A discreet credit management team within the lender will collect payments from clients on your behalf.
Non-confidential invoice
finance
An ideal product for businesses that wish to release working capital, whilst remaining in full control of collecting payments from their clients.
Confidential invoice finance
As above, but with the added feature of confidentiality. In other words, your clients will not know that you’re using invoice finance.
Recourse invoice finance
Generally considered to be a lower cost option but carries a little more risk, as the business is responsible for invoices that are paid late or unpaid.
Non-recourse invoice finance
Gives you more comfort and security as a business owner, as the lender absorbs any costs from late or unpaid payments.
Selective invoice finance
For business owners who are looking for the ultimate flexibility, you can simply pick and choose which invoice(s) you finance, exactly when you need to.
How Origin Finance Can Help
At Origin, we have access to a sizeable panel of invoice finance lenders, many of whom only offer invoice finance and are specialists in their dedicated sectors such as construction, manufacturing & engineering, and wholesale to name a few. If you choose to work with us, a dedicated account manager will be on hand to discuss your specific requirements to see whether invoice finance suits your business.
Whether you’re a start-up or blue chip company, sole trader, or PLC, you can qualify for invoice finance provided you sell to other businesses. Get in touch today to see how Origin can help.
By working with Origin, you will gain access to a wide range of commercial lenders, including those who will only accept broker-introduced applications. Origin don’t charge any fees for our services as we are directly remunerated by the lenders.
Invoice Finance Key Points
Invoice finance can be used for selected invoices.
Release up to 90% of the value of your invoice(s).
nvoice finance is strictly for invoices addressed to businesses, and not consumers.
Origin is a finance broker, and we will pair you with the most suitable lender on our panel.
Invoice finance can be used for maintaining working capital to continue high growth, offering extended payment terms to clients and facilitating working capital needs of contracts.
The minimum turnover (of forecasted turnover) of your business needs to be £20,000 per month.
Invoice Finance FAQs
Am I eligible for invoice finance?
Can invoice finance cover the entire total of my unpaid invoices?
How can I use invoice finance?
How do I know whether I’m eligible for business finance?
What are the typical fees associated with invoice finance?
What different finance solutions does Origin offer?
What is the maximum I can borrow with invoice finance?
OTHER FINANCE OPTIONS
Funding without the fuss
We offer a range of finance solutions to businesses of all shapes and sizes and in every sector.
